Economy makes Harley less bankable

Fuel-efficient bikes sought by dealers

Owning a chromed or custom Harley-Davidson is "not about transportation; it's about an experience," says the company's chief executive, James L. Ziemer.

That's clear even to most non-motorcycle fans, who, on any given day, are likely to see T-shirts, leathers, window decals, cigarette lighters, bandannas and other paraphernalia emblazoned with the company's trademark bar and shield.

But there's one Harley-Davidson Motor Co. item that hasn't been selling as well in the U.S. recently: the motorcycle itself.

Sales of the heavyweight bikes were down 10.2 percent in the first six months of this year, and the Milwaukee company is cutting back production as much as 40 percent to whittle its inventory.

Many dealers are also feeling the pain, as the economy weakens, credit tightens and the motorcycle market becomes increasingly transportation-oriented. Some are even starting to offer products that would have been sacrilege in better economic times: They're selling fuel-efficient, foreign-made - even electric - scooters on the same floor as Harley's flag-waving, thunderous internal-combustion cruisers, affectionately known as Hogs.

It is, to be sure, a culture clash, but desperate times are calling for desperate measures at some dealerships, especially in California and Florida, the top two motorcycle markets, and other areas that have been more severely affected by the down economy.

At the Harley outlet in Glendale, Calif., sales are off about 20 percent this year, with high-priced touring models - "usually our lead products" - particularly hard hit, said Emily Vindeni, controller of the shop.

Lately, Vindeni said, the bikes sold aren't so much for leisure but necessity. People "are not going to spend $15,000 to save gas. They're going to spend $10,000 or less."

What is selling is Harley's smallest, lowest-end bike, the Sportster, as well as its entry-level sport bike, the Buell Blast. In the spring, that short list might include Asian scooters.